MANTRA Founder Will Burn 82 Million USD of OM Tokens After the 5 Billion USD Collapse

John Patrick Mullin, the founder and CEO of the Layer 1 blockchain MANTRA, stated that he would burn 150 million of his OM tokens, worth approximately 82 million dollars, to help rebuild trust in the network. This decision was made after the value of OM fell by over 90% on April 13, wiping out more than 5 billion dollars in market capitalization. The sudden fall of the OM token occurred within a few hours and left the community in shock. In response, Mullin stated that the token burn aims to demonstrate his "relentless focus" on building the project and restoring confidence in the ecosystem. The tokens are currently staked and will be unstaked on April 29, after which they will be sent to the network's burn address. Mullin stated on X that: "The MANTRA team is not selling $OM during this difficult market phase," while denying that this group is related to the fall of the token.

MANTRA also announced that they are negotiating with partners to increase the number of tokens burned to 300 million, accounting for about 16.5% of the total 1.8 billion OM tokens. The research team stated that this move will reduce the link ratio from 31.47% to 25.30%, potentially leading to better staking rewards for users. The company blamed this incident on "reckless liquidation," while Laser Digital, an investor in the project, stated that they were not involved in this event. Mullin also posted a poll on X to ask users whether they support the token burn plan. Over 8,000 people voted, with more than 81% in favor of an immediate token burn. After the announcement, the price of OM surged briefly before falling again. According to the latest update, the price has fallen by 4% in the last 24 hours, according to CoinMarketCap.